Tech Titans' AI Bet Gone Wrong: Cash Flow Crisis Hits IBM, Google

IBM's recent stock price drop of 25.2% on July 14 is a stark reminder that even blue-chip companies can become unstable investment anchors.

The company's quarterly dividend payout, which has been uninterrupted since 1916, was not enough to guarantee stability in the stock price.

Arvind Krishna, IBM's CEO, attributed the disappointing second-quarter performance to the company's failure to adapt and move quickly enough.

This is part of a larger trend in the tech sector, where companies are investing heavily in AI infrastructure but struggling with cash flow management.

Google, for example, generated $112 billion in profit last quarter but saw its stock price drop due to negative free cash flow.